The Studio Furniture Company manufactures leather recliners.In February,the firm's Assembly Division started production of 50,000 leather recliners.During the month,the firm completed 55,000 chairs,and transferred them to the Finishing Department.The firm ended the month with 10,000 chairs in ending inventory.There were 15,000 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by the accounting manager.The Operations Manager reported that the beginning work in process was 30% complete as to conversion costs,while ending work-in process was 80% completed as to conversion costs.

Required:
Using the FIFO method,determine how many units that were started in February were completed during February?

Question

The Studio Furniture Company manufactures leather recliners.In February,the firm's Assembly Division started production of 50,000 leather recliners.During the month,the firm completed 55,000 chairs,and transferred them to the Finishing Department.The firm ended the month with 10,000 chairs in ending inventory.There were 15,000 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by the accounting manager.The Operations Manager reported that the beginning work in process was 30% complete as to conversion costs,while ending work-in process was 80% completed as to conversion costs.

Required:
Using the FIFO method,determine how many units that were started in February were completed during February?

Quizplus · Accepted Answer

E)[(50,000 - 10,000])= 40,000 units

The Studio Furniture Company Manufactures Leather Recliners